Metromile is an innovative digital auto insurance company that bases premiums on miles driven. Many low-mileage drivers overpay for car insurance, as they are essentially subsidizing those that are more frequent drivers. Customers download the “Ride Along” app, which tracks driving habits and provides the best rates for the lowest risk drivers. It also fully automates the insurance claim process and offers other benefits for members.
One of the key investors in the company is Mark Cuban. The transaction is scheduled to close in the first quarter of 2021. We are looking for opportunities to develop a position in the early stages as it develops from here. There is currently support around the $11 area. The stock briefly traded as high as $14.79 last week.
Our game plan here is to look to build a position on a pullback and sell into strong momentum. We are looking for the stock to stay volatile, but with the strong interest in SPACs, there is a good likelihood this will be a ‘go-to’ name as traders look for the next hot deal to close.
As always we would not chase the open on Monday but will look for entries as trading develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, employees, and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing positions in INAQ. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.